Have You Heard This
“Your product is too expensive. I have seen the price cheaper on the internet. Why should I buy it from you, when I can just order it off Amazon?”
Every sales professional has heard this statement in their sales career. If you have not heard it yet, don’t worry you will.
How will you overcome price?
As shoppers, sometimes we only consider price when purchasing a product or service. Many times, we fail to see value in product or service we are purchasing.
When a customer says NO to buying the item, he or she is not saying NO to us. Rather they are asking you to give them a reason to purchase from you. This means we need to handle an objection and we may need to overcome price.
As a professional sales person, you and I must realize, when a customer has an objection to the product or service, we have not done our job in answering their questions or helping them understand the value.
Too many sales people believe objections on price is an obstacle to closing the sale. This is far from the truth. To overcome price is an opportunity for us to learn what our customers wants and needs are, so we can help them accomplish what they are looking to do.
Objections in The Purchasing Decision
When objections come up, it is time to learn what is the real reason the customer is saying no. Find out what they think and find out what the real problem is.
It will be important to find out why the customer needs your product and what they hope to accomplish after they purchase it.
An objection is a sign that the customer is considering your product or service and needs to see the value, before they move forward with the purchase.
What Causes a Price Objection
When you have a customer and they say no, this means they do not understand our price compared to another product or service they may have seen in the market.
It is this problem we will need to overcome to be successful in closing the sale.
Our job is to help customers understand our product, price and the value it will give them after they purchase it.
We must cover these three areas. The better you can explain the feature, benefits and the advantages the customer will receive, the better decision they can make to move forward.
Customers, rarely buy anything without first asking questions and understanding our own purchasing decision. If you are going to take the customer through the sales cycle, you will have to get good at the presentation.
Our job as a sales representative is to be prepared for any questions the customers has.
Every answer we give, brings us one step closer to closing the sale successfully and allows us to overcome price objections.
As customers, we have all done this, we go out to purchase something we really want, then decided not to buy the item.
We come up with different reasons not to purchase the product or service, including:
- The product or service is more than I need.
- The other one I saw is better. I don’t like this one.
- Do I really need this expensive product or service, right now?
- I’m sure if I wait a few days, I can get it cheaper somewhere else.
- My spouse and I need to talk about this purchase before I buy it.
- I need a few days to think this over this purchase.
- Can I have your business card? I’ll get in touch with you when I’m ready to buy.
Do these statements sound familiar? As a sales agent, you have heard them all. Do you know how to handle them when they come up? Here are 50 tips that can help you handle these statements and close more sales.
Why We Raise Objections
One of the reasons we say no to making a purchase is because we do not understand the price, features, benefits, product quality or service quality.
Customers do not always know everything about our product or service, although a lot of information can be found by doing a simple Google search, these days.
Just like before the internet, customers are afraid of change when it comes to doing business with company they are unfamiliar with. Many customers do not understand competition and fall in to a comfort zone. They decide to not do business with emerging companies.
Has this happen to you?
You go out and make a purchase. A few hours later you have buyer’s remorse? Well you’re not alone, it happens to everyone. Nobody wants to feel as they have made a bad purchasing decision.
Thinking that we have made a mistake happens when we do not understand the value of product or service we have purchases. No one want to feel like they do not know something.
We all want to feel smart and knowledgeable. Customers are just like sales agents. If they do not understand the product or service they are going to purchase then they will say no to making the purchase.
One of the main reasons customers say no to purchasing with us is because there is a competitor selling a similar product to what we are offing.
Customers will try to tell us, the sales agent, that the competitor is more flexible, offers a better-quality product and has a lower price. These statements are all areas you will need to build value before the customer buys with you.
Time to Handle the Objection
Once the customer gives you the reason they are not going to buy with you today, it is time for you to handle that objection and find the opportunity to make a sale.
We need to give our customers the information they need to remove any objections from their mind. Do not assume that the first objection the customer gives you is the real reason they are not ready to purchase.
Many time buyers will give the easiest reason to not buy, such as price.
We must ask good open ended questions to uncover why the customer is not ready to make a purchase today.
Did you know most customers will give price as the reason they are not moving forward with the purchase?
They will give you common sales objection statements like:
- The cost is too high.
- You are more expensive that XYZ company.
- That’s way more money than I was hoping to spend.
- I have seen a similar product or service on sale.
Customers understand sales people do not like to deal with this objection. This statement is the least trained upon statement, in my experience.
Before you can overcome price objections, understand the customers’ needs first. They could be considering the wrong product or there might be a product with fewer features for a better price.
A product that is comparable and one that is in their price point.
Steps to Overcome Price Objections
Being empathetic and understanding is the first step to overcome price objections.
When a customer tells you their objection, pause for a few seconds to think over what they just said. Do not immediately presume you understand the issues they are bringing up.
This is a good time to move to the next step.
Clarify the Objection
You cannot solve a problem you do not completely understand. Be a good listener and ask open-ended questions. Though those questions you can find out more about the customer’s objection, why they need the product and what their hot buttons are.
Here is another post you can check out that will help you develop an additional sales understanding.
It is important to summarize what the customer is saying. Show them you are paying attention to their needs, as well as picking up on the reasons they are looking to buy.
Once you an understanding of your customer’s objections, you can move on to the next step in the process.
Provide Multiple Solutions
When I was selling cars, I learned to use these 9 phases and overcome any price objections. As you look for ways to provide different solutions you can use these statements and build trust with your customer.
When the customer’s objection is price, they are telling you they do not understand the value of the products or services.
Typically, customers do not understand our branding, marketing, business strategy, our market segment or cost of research and development. The truth is they really don’t care.
We should learn how to hand the price objection and sometimes we need to compare our product to the competitions.
Show the Benefits Customers Will Experience
Not all customers see the value of a product or service right away. As the experienced and trusted sales agent, we need to help them understand what the benefits of our product is.
As sales professionals, we need to offer peace of mind to our customers. Remember, what we think is important but it is not always important to the customers purchasing decision.
Use the Feel, Felt, Found Method
Many people have used this method and have experience this method first hand. It is a great way to relate to your customer and make them feel comfortable as you start to share the benefits and advantages of your product.
You can say, “I know how you feel. Others I have helped have felt the same way, but this is what they found…”
What you have done is show empathy to your customer. You have shown the customer this is not a one of a kind concern.
As you use the statement, you provide their reasons to purchase back to them. This in one of the most effective ways to handle price.
A powerful way to make sure customers buy from you is to show them all the other things you and/or your company do. You need to add value to their purchase making decision.
How are you different then all the other companies the customer can do business with?
Ask customers, how important each one of their hot buttons are to them.
You should have a list of what is important and what is not, based on the conversation you have had.
Examples of ways you can sell value to your customer: Ask them:
- Do you like experienced, friendly and motivated people helping you?
- Is a well-trained and knowledgeable staff important to you?
- If being able to reach the customer service department as needed is important to them.
- Tell customers your 1-800 number, if you have one for after-hours help with the product or service.
- Depending on the type of company you are a sales agent for, ensure your customer that they do not need an appointment to come in and see you.
- Let them know that they can subscribe to your company newsletter and stay in touch with changes in the industry.
- Let them know you have different methods of payment are available to make the purchase easy for them.
- If the service you offer, makes house calls, let them know about that.
- Talk about what you or your company does for the community.
You need to get is a few “YES” answers and the customer will sell themselves on wanting to do business with you.
This is where you ask good closed ended questions that require the customer to answer YES. No cannot be an option when they answer your question. If no can be said, you will need to rephrase your question before you ask it to the customer.
As you look for ways to handle the customers price objections, make sure you ask yourself, have I address their concern and have I found the right solution.
Sometimes another, new, objection can be brought to the surface. When this happens, no problem, just start the process at, Steps to Overcome Price Objections (above).
Substitute the work Price for whatever their objection is.
If the customer does not have any other objections, and is satisfied with your answers, at this point in the sales process you should proceed to closing the sale.
Remember to ask qualifying questions to close the sale during the process.
Reducing the Number of Objections
To have the best results in your sales process, you need to reduce the number of objections. That means you must talk about objections other customers have brought up, before your customer does.
Make sure you focus on all the key points of your sales presentation. Never skip important points in your presentation because you feel they understand what you are saying or because you feel they may not buy from you.
The better you know the personality of your customer the better you can present your sales presentation to them.
Remember the customer came to talk to you because they need your help in making the best decision. And yes, sometimes our product or service is not the best purchasing decision.
Six Quick Tips
- Make a list of your Top 5 Objections and get good at answering them.
- Gather other members of your team and find ways to answer those objections.
- With your team or in the mirror, practice giving the answer to your customer till it is a natural part of your presentation.
- Use the pre-rehearsed answers on real customers.
- Revise your responses as needed. Remember tone, body language and verbal language is important when you deliver the message.
- Keep a notebook for successful approaches and study what you did that worked to complete the sales.
If you follow the process outlined above, you will find ways to become successful and overcome price objections. Remember, no one want to pay the price on the tag if they do not understand what that product or service will do for them.
Build customer confidence in you and you will see your commissions rise over time. Even if the price of your goods and service increase customers will come back to you because they like to do business with honest and knowledgeable people.
As a professional sales person, it is important to practice and get good at all aspects of your sales presentation. It is easy to sell a product or service to people who want it.
It is much more satisfying to sell the same product or service to people who you can show why they need it.
Are you more confident that you can handle and overcome price as an excuse?
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Founder and CEO, Discover Your Life Today
Maveen has built his career in Banking, Insurance, Home and Automobile Sales. Providing exceptional customer service is his passion. Writing is a way to share his knowledge and help change the lives of million of people. Like the Facebook Page to support him.